| You may have decided that your company needs a | | | | least) and, in most cases, capital resources as well. |
| comprehensive, formal strategic plan, but are you | | | | It is relatively easy to kick off strategic planning with |
| really ready for the challenge? Just as important as | | | | the intellectually enjoyable discussions about markets, |
| your willingness to plan is your commitment to | | | | customers, competitors, capabilities, etc. In most |
| expend the resources (time, creative energy and | | | | cases, it is fun and exciting to begin the journey to |
| money) required to do it right. Proper planning always | | | | examine your business with the tools of a good |
| involves significant resources for implementation. You | | | | strategic planning process. It can be very costly if |
| and your management team should be committed to | | | | you are not willing to finish the journey with the |
| following through before you commit any time to the | | | | resources necessary to achieve your strategic vision. |
| first planning meeting. | | | | One of my clients learned this lesson the hard way. |
| A recent article by Kerry Capell at BusinessWeek, | | | | After completing the first two phases of Simplified |
| How Britain Jumpstarts Design (October 3, 2007), | | | | Strategic Planning (Business Analysis and Strategy |
| describes the government-sponsored process for | | | | Formulation), the management team believed that |
| helping small to mid-sized businesses re-energize their | | | | their products and services were game-changing |
| companies through innovative design. The author | | | | entries in the market. They all agreed that they could |
| relates several different case studies in which a | | | | potentially triple the size of the business in the next 2 |
| company identifies, with some outside help from | | | | years. It was clear that the chosen business building |
| Britain's Design Council, ways to renew its products | | | | activities required capital. At the beginning of phase |
| or make its company brand stand out from the | | | | three, Implementation Planning, the fiscally |
| crowd. There have been several brilliant and very | | | | conservative owner announced to the team that he |
| profitable success stories from the program. | | | | would entertain neither significant debt nor ownership |
| One interesting thing about the process is that the | | | | sharing as a means to implementing their action plans. |
| support of the Design Council is not simply a | | | | All growth would be self-financed from available cash |
| government giveaway. It is quite competitive to | | | | flow. It was clear to all team members that their |
| qualify for the program. All company applications to | | | | aggressive plans for growth would be starved for |
| the program are reviewed by a panel of experts. No | | | | resources and would take at least twice as long to |
| company is allowed in the program unless they have | | | | achieve. This so disheartened the management team |
| both the willingness and the ability to invest significant | | | | that two very talented members left the company |
| resources in product or process design. In short, the | | | | within the next six months -- a huge loss in executive |
| Council does not want to waste its resources helping | | | | experience and industry knowledge! |
| the business with their design planning activities unless | | | | This is just one example of the potential negative |
| the management team and ownership can | | | | impact caused by lack of commitment for strategic |
| demonstrate beforehand that they will be able to | | | | planning follow-through. There are many other stories |
| follow-through with the good ideas that come out of | | | | of companies that crafted great strategy and then |
| the process. | | | | suffered from inadequate support of their plans. |
| This same philosophy should also apply to your | | | | Before initiating your strategic planning efforts, be |
| thinking when you consider launching your strategic | | | | sure that you have the resources and the |
| planning process. A comprehensive business planning | | | | determination to implement your great ideas. |
| process is bound to help your team develop many | | | | Copyright 2007 by Center for Simplified Strategic |
| new ideas that will help you change your organization | | | | Planning, Inc., Ann Arbor, Michigan - Reprint permission |
| for the better. Implementation of these ideas will | | | | granted with full attribution. |
| require management time and creativity (at the very | | | | |